2015 12 8 presentation in fair trade hanoi as part of multrap project
TRANSCRIPT
Introduction to the Fair Trade system of the World Fair Trade Organization and the opportunities presented though Fair Trade to Vietnam enterprises
Presented by: Christine GentDirector WFTO-Asia
[email protected] Hà Nội, 12/2015 www.wfto-asia.com
Introduction to WFTO
Benefits of WFTO verification
The WFTO Guarantee System
Success stories
Article 25 • Everyone has the right to a standard
of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security.
About 824 million people go hungry or have a precarious food supply; 500 million of them suffer from chronic malnutrition.
“How can we rest while so many people are hungry in the world while there is enough food for all?”
Sustainable Development Goals
Environment
Financial
SocialSustainable • The product lifecycle
• Carbon use• Cradle to grave • Reuse • Disposal• Energy Use
• CSR – Living Wage • Local Employment• Fair Trade• Integration Enterprises
• A bottom line that covers costs including Fair Wages, and also allows for business expansion and investment
What is Sustainable Development?
10
The global FAIR TRADE definition
Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, small and marginalized producers and workers – especially in the South.
Fair Trade Organizations (backed by consumers) are engaged actively in supporting producers, awareness
raising and in campaigning for changes in the rules and practice of conventional international trade.by FINE 2001
Defining the Marginalized
Fair Trade …………….. by offering better trading conditions to, and securing the rights of, small and marginalized producers and workers – especially in the South.
Fair Trade
A CHARTER OF FAIR TRADE PRINCIPLEShttp://www.fairtrade.net/fileadmin/user_upload/content/2009/about_us/documents/Fair_Trade_Charter.pdf
What is a Fair Trade Organization? • Income from trade • Social objectives to work with the
marginalized at the heart of the activities“commitment to improve the social and economic conditions of marginalized producers and suppliers.”
• Follow the ten principles of Fair Trade• Not based around any one product or
one product standard
WFTOGlobal coordinationfrom the Netherlands
WFTO-AsiaRegional supportfrom Thailand
FTOs75 countriesNational Fair Trade Networks
Fair Trade Organizations are able to carry the WFTO Fair Trade Organizational label for recognition in the market place.
WFTO.COM 13
Ten Principles of Fair Trade
Benefits & Advantages of WFTOMarket Access Recognition
Differentiation in the market place
Long term relationships
Solidarity markets: national/regional/
globalCSR reporting
Shared Community
Together in isolation
Annual conference (Asian focus for the
next 2 years)
Access to information Shared tools Local workshops and
training
Potential for change
FTAO in Brussels
Legislation at national level
Bottom up Fair Trade for Fair Trade practitioners
Systematic approach for
greater efficiency
Simple approach
Market Access
• 5.9 Billion Euro global retail sales
• 65 Million Euro sales from WFTO - Asia
Market Access
• Ambiente, February 12-16 2106• WFTO-Asia AGM with BIG fair, October 2016• Delhi November 2017 with IFOAM
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
3.46
3.15
7.66
7.70
8.20
16.20
21.62
17.50
26.21
34.05
41.20
62.90
64.50
70.71
77.09
88.23
93.00
Growth in salesMillion INR
Joined WFTO
Differentiation in the market place
•42 •58•34•67
World Fair Trade Organization Logo
CSR reporting
• Potential Fair Trade /Actual Fair Trade• FLO• WFTO• Equivalent
Fair Trade Organizations are able to carry the WFTO Fair Trade Organizational label for recognition in the market place.
Shared Community
Together in isolation
38
Networks
Provide access to knowledge and resources that are not otherwise available to the organization (Powell & Brantely)
Seoul 2014
Milan 2015
Regional Conference 2016
• Bangkok• Market focus• Promoting Fair Trade
Organizations by market segment online to global audience
IFOAM conference Delhi 2017
WFTO conference Delhi 2017
Fair Trade Towns
2015 International Fair Trade Towns Conference
November 20th 2015 Launch of Twin Fair
Trade Towns Campaign Puducherry and
Auroville
Access to information
The VIP primarily intends to build a pool of Fair Trade advocates through volunteerism.
Danielle D’Silva with member Villageworks Cambodia
FT and GS Workshops
• Philippines 28th July to 31st July• Korea 6th August• Cambodia 6th, 7th August• India 10th to 15th August• Pakistan 11-21 November• Sri Lanka 22 – December 3• Vietnam 3-6 December • Laos December• Bangladesh 21 January• India 6 February• Indonesia 20 March
On average 1 post reaches +3,155 individuals
Social Media
Potential for change
• Philippines - PRESENT Bill • Korea - Social Enterprise Bill• Vietnam - Social Economy Bill
“Social Enterprise is an emerging
force in Pakistan” The Guardian, 2015
•
World Fair Trade Day14 May 2016
Systematic approach for
greater efficiency
Created by & for Members!
By the Members!
The Guarantee System (GS)
Self Assessment as the basic monitoring obligation for trading organizations.
The GS guarantees the compliance of members with the WFTO Standard.
The GS label guarantees the organization, not the product.
The emphasis is on the Internal Monitoring System the FTOs use to monitor their supply chains.
The Ten Principles of Fair Trade
‘Working on the GS and IMS is essential to making SAFFY’s
future secure’
Rad SaringanSAFFY, Inc.2611 Lamayan St., Sta. Ana, Manila 1009 Philippines
Credible
Accessible
Affordable
Clear
Download necessary
forms from
WFTO.com
www.WFTO.com
WFTO Fair Trade Standard
Fair Trade Network
FTN
Trading Organizati
onFTO
1. Trading2. Non Trading3. Some Trading
FTN and FTSO with
minor tradingTy
pes o
f M
embe
rs
FTO50% of
turnover from Sales
FTNFT network,
membership org. sales <50% of
turnover
FTSO Advocacy, Support, Research,
Promotion,
sales <50% of turnover
* Must comply with trading
requirements *
Applicant
Applicant REQUIREMENTS:
3 stages to become a member
Guaranteed
Registration Document + Mission
2 Years of legal existence w/ accounts
Commitment to 10 Principles
List 3 references
Provisional
Completed Profile (TBC)
“The _________strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed
to continuously strengthening our brands and products to improve our competitive position.”
“__________ provides dignified training and employment opportunities for vulnerable young people, empowering them with the personal and professional skills to overcome socio-economic limitations and inspire community regeneration.”
Adidas Group
JW Productions
Mission Statement
• How are you registered?
• What is an acceptable legal process?
Registration Document
• Two years of Audited Accounts
• When does the financial year end?
Accounts
ReferencesCountry Network | In-Country Comments | 3 References
Dear WFTO Members of Pakistan,
The WFTO-Asia office is emailing you regarding an applicant to WFTO, XXX. Based in XXX, India is a private company founded in 2000. The reason behind their foundation was XXX. They have 35 primary producers that work on site, but mainly works with producer groups off site, of which there are 4 groups. XXX has 1 store. If you would like more information please request it or visit their website at www.website.com
As a member of WFTO this is your opportunity to share any comments you wish to make regarding the applicant's reputation with regard to WFTO principles and ethics. If possible, please send a response within the next 7 days. If you would like to know who this email was sent to please see the organizational list below my signature.
Lastly, please let the WFTO-Asia office know if you would like to seethese in country comments delivered in another way. We are always open toreceiving feedback on the effectiveness of this process.
Thank you for your participation.
Role Play:Christine = Reference
One Vietnam WFTO member
In Country Comments
WFTO network member
Handling fee
• Handling Fee – 1 time only
• Annual Membership Fee: 500-2,500 Euros• Audit 1x per 4 years: 500-1,500 Euros
Sales/income in Euros Handling fee in Euros
< 135,000 100
135,000-1,000,000 250
1,000,000-5,000,000 500
> 5,000,000 750
ProvisionalApplicant
Step 3:APPROVAL
(or rejection)
• WFTO Global Board makes final decision
Step 4: Pay WFTO fee
•WFTO Global sends membership fee invoice
Result: PROVISIONAL
MEMBERNo Use of Label/Logo
Discussion: What do you forsee as the biggest barrier in the application process for you?
• Assessment of compliance against standard
• Self-rating: OK / Improve / Not Compliant
• Evidence to support what you claim
Principle 10 Environment
Applicant Provisional
Self Assessment
Report (SAR)
To improve performance against FT Standard over next 2 years
Peer Visit
• FTO proposes peer• Peer can be a trading partner, WFTO
member, from a Network, or local NGO, etc.
Lombok of Indonesia Peer Visit, October 2015
Monitoring Audit
Independent auditors approved by WFTO Global. They will
check compliance against the requirements of the
Standard through field visits and document review.
Step 3: Monitoring Audit
(cont.)Step 4:
Approval (rejection)
Result: GUARANTEED
FAIR TRADE ORGANISATION
GuaranteedApplicant Provisional
External Audit
SAR within 24 months
Peer 2 months
SAR within 24 months
SAR
12 Peer 12
External Audit
12
Application Time As fast as the applicantAverage: 3 months
Applicant AssessingRegional Membership Committee About 2 weeks, may send feedbackGlobal Office and Board 1 Month
SAR Submission Must be within 12 months
Regional feedback Sent to org. within 1 weekGlobal Processing 1 Month
Peer Visit (First time optional) Completed within 12 months of SAR
Monitoring Audit If Peer visit first: 12 Months after Peer Visit accepted
If no peer visit: 12 Months after SAR acceptedMinimum: 10 Months Max (after application): 2 Years
Leng
th o
f Tim
e
Annu
al F
eeTurnover / income Membership
feeRegional
feeTotal
annual payment
In Euros
FTO - Trading
< 135,000 400 100 500
135,000 - 400,000.003 x turnover 175
calculation based on turnover
400,000 - 1 million.003 x turnover 250
calculation based on turnover
> 1 million 3,000 + 350 for every extra million 250
* Max 2,600
calculation based on turnover
FTSO
< 135,000 400 100 500
135,000 - 400,000 1,250 175 1,335
400,000 - 1 million 1,250 250 1,500
1 million – 5 million 2,000 250 2,250
> 5 million 3,000 250 3,250 FTN
Flat cost: 400
Other Costs:• Payment of Audit & Peer Visit (transportation, accommodation)• Handling Fee 100-750 Euros
Internal Monitoring System
Fair Trade Accountability
Watch(FTAW)
Label Example
**Please fill out + return the reflection handout
Q & A
2013 report show that "world trade of creative goods and services totaled a record US$624 billion in 2011 and that it more than doubled from 2002 to 2011; the average annual growth rate during that period was 8.8 per cent." - 2013 Creative Economy Report, UNDP & UNESCO
The facts:
05/01/2023 91
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CACAO TREE OF HOPE
6. Exclusive- its only available to WFTO members.
1. Differentiate you from others who claim to be selling fairly or ethically. This difference is based on commitment and values that make it extremely difficult for others to compete against.
2. Reinforces the strategic relationship you have with the Fair Trade movement.
3. Supports a price premium.
4. Complements your brand strategy.
5. It will provide regulatory acceptance.
GUARANTEED MEMBER TRAID AID, WHY DO WE WANT THE LABEL?
A journey of a thousand miles begins with a single step
Here to helpWorld Fair Trade Organization-Asia
Website: http://www.wfto-asia.com
Christine Gent [email protected]
SAR, Profile and Application questions and supportElise Hawley [email protected]
Thank you